Zoom posted better-than-expected second quarter financial results on Thursday as well as a strong outlook but its shares still fell after hours.
The company reported second quarter non-GAAP earnings of 2 cents per share on revenue of $145.8 million, up 96% from a year ago. Wall Street was looking for non-GAAP Q2 earnings of 1 cent per share on revenue of $130.3 million.
In terms of outlook, Zoom said third quarter revenue will be between $155 million to $156 million with non-GAAP earnings of 3 cents a share. Wall Street was expecting third quarter revenue of $140.4 million with a non-GAAP earnings loss of a penny per share.
The company projected fiscal 2020 revenue of $587 million to $590 million with non-GAAP earnings of 18 cents a share to 19 cents a share. Shares of Zoom were down nearly 7% in after market trading.
Zoom said it had 66,300 customers with more than 10 employees and had 466 customers spending more than $100,000 for the trailing 12 months.
CEO Eric Yuan noted the company’s 96% year-over-year revenue growth during the quarter and increased free cash flow. Zoom also announced that Verizon Business Group will market Zoom’s unified communications platform to its global customers via a new partnership.